Cost of living: Welsh winter fuel payment to double to £200

Payments to help people on Universal Credit and other working-age benefits to pay fuel bills will be doubled by the Welsh government.

Payments from the Winter Fuel Support Scheme will rise from £100 to £200.

People who have already received the payments will get the extra money in the coming weeks.

It comes ahead of an expected significant rise in the energy price cap, due to be announced on 7 February.

It is thought the cap, which is the most energy companies can charge for typical bill, could be increased by 50%, taking average costs for residents from £1,277 to almost £2,000 a year.

The Welsh Tories and Plaid Cymru welcomed the announcement, although Plaid said the payment "clearly won't help everyone in need".

In launching the expansion of the scheme, Welsh Labour Social Justice minister Jane Hutt criticised the UK government, alleging it was more focused on the prime minister than tackling the cost of living crisis.

Who is eligible?

The scheme is open to households where at least one person is on a working-age means-tested benefit, and is responsible for paying the property's energy bills.

Claimants must have been claiming any one of the following benefits between 1 December 2021 and 31 January 2022:

• Income support

• Income-based job seekers allowance

• Employment and support allowance

• Universal credit

• Working tax credits

Applications are open until 28 February, although councils should have contacted people they believe are eligible.

Although the cash is aimed at helping people pay their fuel bills, there are no restrictions on how the money is spent.

• What is Universal credit?

• Welsh families on benefits to get £100 winter cash

• I'm freezing - can I get a cold weather payment?

Last year the Welsh government said the scheme was costing £38m and was targeting 350,000 households.

It was unclear on Tuesday evening what officials now expect to spend on the payments, although the Welsh government said the cash is part of its £51m Household Support Fund.

BBC Wales was told no cost could be given as it will depend on how many ultimately apply.

In a briefing with journalists, Jane Hutt said that 40% have so far taken up the scheme, with 106,000 payments already made from a total of 146,000 applications.

Most welfare benefits are not controlled by Cardiff, and Ms Hutt criticised the UK government's new way-to-work scheme as being a "short-cut to slash spending on welfare while driving people into insecure short-term work".

Claimants will have just four weeks to find a job in their preferred sector under the new rules, and could face part of their Universal Credit benefits being withdrawn if they fail to make "reasonable efforts" to secure work or turn down offers.

"Unfortunately, there's little sign of hope coming from Whitehall at the moment," she said.

"Instead of practical solutions to help millions in crisis now, we have a government more focused on supporting just one person - the prime minister. When they have acted, they've made problems worse."

A DWP spokesperson said: "With a record number of jobs available, it's right that people who can work are encouraged to take up available roles.

"Our new approach will help claimants get quickly back into work while ensuring businesses get the people they and the economy need."

What have opposition parties said?

Sioned Williams, Plaid Cymru spokeswoman on social justice and equalities, said the Welsh scheme is "welcome additional support for the thousands of people in Wales who are facing that impossible choice between heating and eating.

"But for the many households who are already in debt as a result of the cost of living crisis, and for the vast majority of those who live in fuel poverty who are not in receipt of benefits, it can only be seen as a starting point. Clearly the payment won't help everyone in need."

Her Welsh Conservative counterpart Mark Isherwood added: "Governments across the world are having to grapple with rising inflation and energy costs, and it's a genuine concern for people across Wales and the rest of the UK.

"One of the reasons behind this is the fact economies have reopened quickly after coronavirus and that's placed immense pressure on global supply chains.

"Welsh Conservatives welcome this announcement and the fact the Labour administration in Cardiff Bay has used the largest ever financial settlement from the Conservative government to increase support payment for those who need it most, and we look forward to future Conservative action across the UK on this issue soon."

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